Ask George & Chuck: Lease should spell out specifics when rental property is sold

By George Stephens and Charles Jacobus

Updated 7:30 am, Friday, February 15, 2013

Q: I moved into a duplex in December 2012 and part of the lease contract is the owner pays for the water. When I moved into the property the water was on and running. The owner sold the property about 30 days after I moved in. When this happened the water was disconnected. I called the property management company and informed them the water was off. It was not until the next day I was told I needed to be at the residence to have the water turned on and the new owner would not pay for after-hour service. That could not happen until the following Monday as this happened over a weekend so I went five days without water.

I informed the property management company I would withhold a portion of my rent for water until it was turned on. Can the owner or the property company now demand I move from the property in three days because I withheld the rent due to the water not being on which was part of my rental contract?

A: Look at and read your lease contract. When the landlord sells a property under a lease contract, it should be done "subject to" the existing lease contract. However, we cannot provide an adequate answer to your question because we don't have the actual contract (nor are we requesting it). However, the Texas Association of Realtors Lease Agreement prohibits a tenant from deducting money from a rental payment (without the landlord's written permission) subject to a penalty that can include eviction.

Q: I am a real estate broker. One of my real estate agents listed a property for a client. She got a full-price offer. So, she sent an email to the buyer's agent stating she'd meet with the seller to obtain his signature. However, she also stated the buyer's offer would have to indicate the particular title company the seller wished to use.

The buyer's agent sent an email stating the buyer accepts this change and believes there is now a contract. Before my agent meets with the seller and gets the offer signed, the listing agent gets another (better) offer. The first buyer's agent insists there already is a contract. She states the above email is a counteroffer with only one condition which the buyer accepts. Is there or is there not a contract?

A: Until the seller has signed the contract-offer and communicated the acceptance back to the buyer, there is no contract. The contract-offer also had a change in it, which could be material that the buyer has not accepted.

Q: My property is in Victoria Is there any local agency to help with the high cost of foundation repair following the drought here?

A: The best way to control the high cost of foundation repairs is the free market system through competition. Enter the following through Google (or your favorite search engine), "Victoria Texas Foundation Repairs" (without the quotes). Every foundation repair company we've ever heard of provides free, no obligation quotes. Get as many quotes as you can, and do not forget to get all the details such as how many piers, are they poured or pre-cast, are they cable-lock piers, how are they leveled, etc. If you have no experience with foundation leveling, we'd suggest hiring a professional (licensed engineer) to review your quotes.

Note: We are not aware of any agencies that help with these costs, but if any of our readers know of any we would be happy to report their findings. Readers, can you help?

Q: I have a contract signed by both parties. An amendment has been sent to seller this past Monday regarding inspection requirements I hoped the seller would negotiate or make the necessary repairs. It is now almost three days later with no reply from the seller and tomorrow is the end of 10 day cancelation period. Why is seller stalling?

A: The seller's inaction could be attributed to any number of reasons: Perhaps the seller just doesn't have the money; perhaps the seller is hoping you'll let the option period pass without exercising your unrestricted right to terminate the contract; or, perhaps the seller is playing "chicken" with you to see if you'll be the first to flinch. At any rate, unless you don't mind buying the home without any of the repairs listed in your amendment to contract, be sure to send the seller a notice of termination of contract before the deadline (more than likely 11:59 p.m.).

To send us a question visit www.AskGeorge.net and select the "Ask A Question" button. Our answers to questions do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney. George Stephens is the broker of Stephens Properties. Charles J. Jacobus, J.D. is Board Certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law.